History of Bank in Timeline

A bank is a financial institution that plays a crucial role in the economy. Its core functions include accepting deposits from the public, creating demand deposits, and providing loans. Banks facilitate lending either directly or indirectly through capital markets, channeling funds from savers to borrowers and contributing to economic growth and investment. These institutions are fundamental to modern financial systems, enabling transactions, managing risk, and providing access to credit.

1979: Establishment of FFIEC

In 1979, the Federal Financial Institutions Examination Council (FFIEC) was established as a formal inter-agency body.

1985: Bank Mergers and Acquisitions Begin

Starting in 1985, banks engaged in approximately 28,798 mergers and acquisitions, acting as either the acquirer or the target company.

1999: Peak in Bank M&A Value

In 1999, the value of bank mergers and acquisitions peaked at around 460 billion USD.

2004: Number of Branches in Germany, France, and Italy

In 2004, Germany, France, and Italy each had more than 30,000 bank branches, which was more than double the 15,000 branches in the United Kingdom.

2007: Second Peak in Bank M&A Value

In 2007, there was a second major wave of bank mergers and acquisitions, with the value peaking at around 460 billion USD.

2008: Brokered Deposits and Bank Failures

In 2008, during the financial crisis in the United States, banks that failed had four times more brokered deposits than the average bank.

2008: Regulators Force Issuance of CoCos

In 2008, following the financial crisis, regulators mandated banks to issue Contingent Convertible Bonds (CoCos). These bonds serve as hybrid capital securities designed to absorb losses when a bank's capital falls below a specified level, effectively reducing debt and boosting capitalization.

2008: Growth in Assets of Largest Banks

In 2008, the assets of the world's largest 1,000 banks grew by 6.8%, reaching a record US$96.4 trillion. This growth occurred despite adverse market conditions and was largely due to recapitalization efforts.

November 2009: Number of Branches in China's Top Banks

As of November 2009, China's top four banks had over 67,000 branches. (ICBC:18000+, BOC:12000+, CCB:13000+, ABC:24000+) with an additional 140 smaller banks with an undetermined number of branches.

2009: Decline in Profits, Increase in Fee Revenue

In 2009, bank profits declined by 85% to US$115 billion, while global investment banking fee revenue increased by 12% to US$66.3 billion.

2015: US has the Most Banks in the World

As of 2015, the United States had the most banks in the world, with 5,330 institutions and 81,607 branches.

2018: Decline in Bank M&A Value

From 2007 until 2018, there was a steep decline (−82%) in the value of bank mergers and acquisitions.

2021: Citigroup Exits Retail Banking Outside Core U.S. Market

In 2021, Citigroup began exiting retail banking outside of its core U.S. market.

2022: HSBC Exits U.S. Retail Market

In 2022, HSBC began exiting the U.S. retail market, except for its wealth management business.

March 2023: Global Banking Crisis and Bank Failures

In March 2023, a global banking crisis unfolded, characterized by liquidity shortages and bank insolvencies, leading to the failure of three banks in the United States. Within two weeks, numerous major global banks either failed or were shut down by regulatory bodies.